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A lowdown on car insurance for college students

  • Cars Explained
  • Xavier Sabastian
  • 11 minutes

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Car insurance companies always charge a hefty insurance premium for young and new drivers. Looking for cheap auto insurance as a college student is like looking for a needle in a haystack. Young drivers are more likely to drive recklessly, commit moving offenses, and make insurance claims, according to car insurance firms. Therefore, for a student, obtaining cheap auto insurance is tough.

In this article, we try to break down the best car insurance for college students. We have also tried to provide a few tips on getting cheap auto insurance for students.

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Cheap auto insurance for college students

We at Way.com discovered that USAA and State Farm were the cheapest auto insurance companies for college students. The monthly premiums for USAA and State Farm ranged from $204 to $279. These car insurance companies, on the other hand, might not be the best fit for you. Auto insurance for college students might be costly, but you also want to ensure you have the right policy.

One of the best ways to get cheap auto insurance is to compare. Comparing car insurance from various companies will get the best car insurance for college students.

car insurance for students

We have listed the top five cheap auto insurance for students. As per our research, these car insurance companies are also the best car insurance for college students.

Car insurance company Approximate monthly premium Approximate 6-month premium
USAA $204 $1224
State Farm $279 $1674
Nationwide $369 $2214
Progressive $372 $2232

Your specific driving history will determine your rates. When looking for the best car insurance for college students, use our information as a starting point.

Common dilemma: Parent’s car insurance or personal student car insurance

As a college student, deciding whether or not you need your vehicle insurance policy is quite simple.

If the student drives the car a parent owns to campus, keeping them on the family’s auto insurance policy is usually the best option. The college student will be forced to remain on the family’s insurance coverage if the car has been purchased together. If a college student owns a car, they must normally have auto insurance in their name.

You normally do not need to notify your insurer to keep auto insurance for a college student who brings a car to school. If your student drives where the liability limitations are different, your car insurance will cover the car up to those limits.

But if your student does not drive to college, check with your insurance company to determine if you qualify for a distant student discount. They can still drive when they come to visit on weekends and holidays, but you might be able to find a better deal.

students car insurance quotes

It’s worth noting that even if your student won’t be driving at college, it’s probably still a smart idea to have them on your coverage. If they are uninsured, the interruption in coverage could result in higher insurance premiums when they are ready to drive again. If you drop your student off your insurance and they don’t have their own, they won’t be able to drive the family cars when they come to visit.

Another item to consider is your child’s work. If they have a job that demands a lot of driving, such as delivering groceries for Instacart or driving for Uber, you might need to change your rules. Please consult your insurance agent to determine the best course of action.

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What time is the best time to remove your child from your insurance policy?

A child’s age is unrestricted when it comes to being covered under a parent’s vehicle insurance policy. Most insurers require that all members of your household who have access to your vehicles be named on your policy. It may be useful to retain your child on the insurance if they still live at home, even if only part-time.

In most cases, though, you can exclude them from the coverage, especially if they have a bad driving record and are driving up your premiums. Keep in mind that your policy does not cover excluded drivers under any circumstances. This implies that you will be held entirely liable for all damages if they get behind the wheel and cause an accident.

When it comes to dropping your child from your insurance policy, there is no final answer. In general, everyone under the age of 25 will have to pay significantly more for insurance. This is something to bear in mind if you want to protect your child from high costs while building their insurance history.

However, keeping them on your insurance can result in higher premiums, especially if they acquire a bad credit history or receive a DUI. If your child moves out of the house for any reason other than school, it’s time for them to get their auto insurance policy.

insurance for students

Cheap auto insurance for graduate students

There are distinctions between buying car insurance as a graduate student and getting car insurance as an undergraduate. You can expect some insurance savings as a graduate student with a bachelor’s degree.¬†

A motorist with greater education is more financially stable and more likely to drive safely, lowering the danger and potential cost the customer poses.¬†As a result, graduate students’ car insurance prices are lower. Your age has a role in the next part of your savings.

Graduate students are often older than undergraduate students, even though there is no set age for them. An older driver is a more experienced driver and a better client to an insurance provider.

Cheap auto insurance for graduate students

USAA and State Farm were the cheapest for graduate students, with monthly costs ranging from $126 to $159. We at Way.com created a general profile and compared prices from popular car insurance companies to identify the lowest auto insurance companies for graduate students. 

The results of the top five cheapest and best car insurance for graduate students are listed below:

Car insurance company Approximate monthly premium Approximate 6-month premium
USAA $126 $756
State Farm $144 $864
Nationwide $168 $1008
Progressive $168 $1008

If you don’t qualify for USAA, State Farm is the cheapest insurance carrier for this age bracket. When it comes to your policy, use this information as a starting point. Because each car insurance company will respond differently to your driving history, it’s a smart idea to shop around for the best deal.

How to get cheap auto insurance for students

Finding strategies to save money is vital because car insurance rates are higher for student drivers. Obtaining many quotes will help you determine how much you will pay for car insurance for college students. Students and their families should be aware of such savings and inquire with insurers to qualify. Because not all insurers charge the same base rates or give the same discounts, comparing numerous insurers to find the best auto insurance for college students is often beneficial.

auto insurance for students

Discounts that can help get cheap auto insurance for students

Taking advantage of all available discounts can result in big savings. College students may be eligible for the following car insurance discounts:

Maintain excellent grades:¬†Some car insurance companies offer discounts to pupils who perform well in school. For example, if a college student’s report card routinely shows at least a B average or a 3.0 GPA, an insurer may reduce their rate. Drivers in high school, college, and graduate school up to the age of 25 may qualify for this discount.

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Perfect driving record: A car insurance may cut your rate if you are a safe driver who has not been in an accident in a certain amount of time, such as three years.

Bundle various insurance plans: When college students or parents combine various forms of insurance with the same provider (such as vehicle and house or renters), they may save money.

Member of a group: Are you a member of a fraternity, sorority, honor society, or another group of people? If this is the case, you may be eligible for a vehicle insurance discount.

College or university to attend: Some colleges and universities have partnered with insurers to provide you with insurance discounts while you are a student.

Far away college discount: If a college student commutes at least 100 miles from home and does not have their own (or a parent’s) vehicle on campus, many car insurances will give them a discount.

Defensive driving course completion:¬†Many auto insurance companies will discount you if you take a driver’s education course in person or online. Allstate has a teenSmart Driver’s Education program that allows teenagers to save money while taking a driver’s education course.

driving course completion

Member of the military:  Are you a military member on current duty or in the reserves? Some car insurance companies may give you a military discount if you are connected to someone who has served in the military. If this is the case, you may be eligible for a vehicle insurance discount.

Sign up for a pay-as-you-drive plan:¬†Many car insurance companies utilize technology to keep track of your driving safety. Every program is different, but they all gather information to evaluate you, such as how fast you drive, when you drive, how hard you brake, and your mileage.¬†If you keep within the insurer’s safe levels, you may qualify for a lower rate.

Opt for Telematics

Getting telematics is another way for students to get cheap auto insurance. Telematics is a system that analyses and transmits your driving habits to your insurance. It can be used to set your rates or lead to discounts if you drive safely. Telematics uses a smartphone app or a plug-in device to track driving habits such as speed, harsh braking, and overall mileage.

While determining your premiums, usage-based auto insurance plans consider the total number of miles you travel. Many large car insurance companies, including Allstate, State Farm, Progressive, and emerging insurtech startups like Root and Metromile, offer usage-based insurance. Pay-per-mile insurance is another good telematics alternative.

Moving abroad? Can my car insurance be paused?

There isn’t a simple way to put your insurance on hold. So, if you’re planning a summer internship or study-abroad program and aren’t sure what to do with your auto insurance, keep reading.

For instance – you’re going to Texas for a summer internship and leaving your car at home. You want to secure your car, but you don’t want to pay the entire premium for the three months you’ll be gone. Storage coverage or storage protection may be an option if your car insurance company allows it. Your insurance will be reduced to merely comprehensive coverage if you choose this option.

What is storage protection?

This safeguards your car against theft, vandalism, and weather-related damage. Because this insurance does not meet the state’s minimum liability insurance requirements, no one can drive a car during this time. Your premium, on the other hand, will be greatly lowered.

If your state monitors ongoing car registration, or if your registration is up for renewal throughout this procedure, you should be aware of this. Because in most states, cars must be adequately insured with liability coverage, or their registration and plates may be suspended. So, it would help if you were cautious. This is because storage coverage insurance is a bit of a grey area. I.e. if you need to pause coverage temporarily, storage coverage can be a viable option. But make sure you’re familiar with the registration laws in your state first.

Can my car insurance be paused

Bottom line –

Various car insurance companies assess you differently and provide different discounts. Therefore, no two insurance quotes will be the same. When parents and college students understand how insurers evaluate them and can compare numerous rates and hunt for potential discounts, they may save money. Depending on where you reside, the cars you drive, and your financial circumstances, you or your college student, may require additional insurance policies.

When comparing estimates and providers, consider that each vehicle insurance company has various coverage options, discounts, claims processes, and state laws to consider. Consider your circumstances, needs, state regulations, and what you’re searching for in auto insurance when shopping for the finest car insurance company.

Financial strength and customer satisfaction were some of our barometers to rank the top car insurance providers.

college student car insurance

Several factors determine your premium expenses. Discounts might help young drivers save a lot of money. You will almost certainly pay more like an 18-year-old than you will as a 28-year-old. Lastly, factors such as where you live and your driving record will also play a role.

college student car insurance

Check out our blogs for info on finding top-rated airport parking, the best parking spots in your city, and affordable car washes near you.


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